CAT vs VMI: Which Is the Better Dividend Stock?
As of Nov 8, 2026, CAT and VMI are closely matched. CAT offers the higher yield at 1.17%, VMI has the higher dividend-safety score, and VMI looks like the better value (its fair-value estimate is 10% above its share price).
Key facts: CAT vs VMI
Data as of · Source: SmarterDividends data
- As of Nov 8, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 1.17%, versus 0.76% for Valmont Industries, Inc. (VMI).
- As of Nov 8, 2026, SmarterDividends grades CAT's dividend safety A (90/100) and VMI's A (97/100).
- By SmarterDividends' count as of Nov 8, 2026, CAT has raised its dividend for 32 consecutive years and VMI for 1.
- As of Nov 8, 2026, CAT pays out 24% of its earnings as dividends and VMI pays out 11%.
- As of Nov 8, 2026, CAT's fair-value estimate is 28% below its share price and VMI's fair-value estimate is 10% above its share price, so VMI looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs VMI: Dividend Yield, Safety & Value Compared," updated Nov 8, 2026, https://smarterdividends.com/compare/cat-vs-vmi
| Metric | CAT | VMI |
|---|---|---|
| Forward yield | 1.17% | 0.76% |
| Annual dividend | $6.52 | $3.08 |
| Payout ratio | 24% | 11% |
| Years of growth | 32 yr | 1 yr |
| 5-yr dividend growth | 7.2% | 8.6% |
| 5-yr total return | 189% | 69% |
| Dividend safety score | 90 (A) | 97 (A) |
| Fair value estimate | $400.75 | $443.83 |
| Upside to fair value | -28% | +10% |
| Frequency | quarterly | quarterly |
| Market cap | $255.6B | $7.7B |
| P/E ratio | 21.9 | 15.0 |
Higher yield
CAT
1.17%
Safer dividend
VMI
Grade A
Faster growth
VMI
8.6%
Better value
VMI
+10% upside
CAT vs VMI — FAQ
Is CAT or VMI a better dividend stock?
CAT and VMI are closely matched. CAT has the higher yield; VMI scores better on safety.
Which has a higher dividend yield, CAT or VMI?
CAT has the higher forward dividend yield at 1.17%, versus 0.76% for VMI.
Is CAT or VMI safer?
VMI has the higher dividend-safety score (97/100 vs 90/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or VMI better value right now?
As of Nov 8, 2026, VMI looks like the better value: its fair-value estimate is 10% above its share price (fairly valued). For CAT, its fair-value estimate is 28% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.